Anyone know how to go about getting a loan to start a business?

[87grandnat]

Right....I could more money but it would take a couple of years, which I would be willing to do if thats what it takes.

Joshua

 

[rmar]

it is pretty high (16k)

is that per month?

 

[Dwayne]

It might be easier to rob liquor stores

 

[87grandnat]

yes that is per month

Joshua

 

[rmar]

Then there is the Dram shop insurance, remodeling advertising, employees and remember a good bartender will always steal more than they make workers comp
payroll taxes state taxes, inspections health fire liquor commission. Must be handicapped accessible. Oh and you need a honest accountant (Good Luck with that one)
It's not that most business fail. It's that most are underfunded. If you have a GREAT plan you might get the loan with 20% if you were buying the building. At least the banks like real estate. Matter of fact they have been collecting quite a bit lately. But when the loan is for equipment and remodeling they figure .25 cents on the dollar if they are lucky at a fire sale.

 

[87grandnat]

Well we got alot of work to do, we are going to start making a plan and go from there. We will see what we can do about getting a loan and if we have to save up some money then thats what we will do.

Joshua

 

[SouthernCal GN]

An idea (though one you may not like); As you have your location already scoped out, have you thought about a franchise sports bar? You go to your funding sources armed with a proven business model, which may remove some of the difficulty in getting financing- but it also opens up another can of worms (contracts, franchising fees and royalties, corporate identity, etc).


Just a thought.....

ps- always keep your biz plan under wraps from the general public- some old treacherous guy might come along and snatch it out from under you

 

[Gothmog]

Perhaps you can buy an existing bar, and have the owner finance. Otherwise, your chances are slim.
check out loopnet.com for commerical property

 

[Little6pack]

I had a friend who had a bar in Malden Mass then moved it to Tewksbury Mass.

Back in the 80's he needed 100k to get going. he bought out former owner. He had Pizza on one side & Full bar room on other side.

The Hours were BRUTAL! The customers were BRUTAL the bar opened at 8 am for the 3rd shifters & closed at 2AM.
You HAVE TO DEAL WITH DRUNKS AS WELL AS NICE CUSTOMERS, WORK IN SMOKE!

MY SUGGESTION GO TO SCHOOL! OR GO & WORK FOR A BAR & SEE IF YOU REALLY WANT TO DO IT.

 

[TexasT]

Well I live in Arlington TX and the place is right by were they are building the new Cowboy stadium, there is a Winghouse and Hooters about a block down the street. This place was a bar called Box Seats but it was closed because they got caught like 3 times selling liqour to minors. The location is excellent I have already look at the lease price and it is pretty high (16k) and a liquor license which my friend would have to get because I have a felony (7 yrs ago....changed man now)

I used to be a shot guy at Labare (no one laugh) for awhile so I have a soso understanding about the bar business. Finding out pricing and what not wouldnt be too hard, but putting it in a detailed business plan would be a different story, this is a pretty big place, 4300sq and would employee about 10people, it had a patio and everything....very cool spot

Thanks....keep the info coming
Joshua

I think at 16k/mon you are out of your mind. That is just for the location, what about the expenses? They don't turn on the lights for free.

While I do think the idea is great(I grew up in Arlington), your fundage is not there. Give up the thought of borrowing the money for a bar. It ain't gonna happen, especially when the housing sector is crumbling.

If I was you(I know I'm not), I'd think on a smaller scale. 4300 sq ft is a BIG place. Use this time to plan how you plan to generate the income to cover the costs associated. The liquor license is your biggest stumbling block. They are hard to obtain and maintain. Being a truck driver are you familiar with the rigors of obtaining a HAZMAT endorsement? The background check parallels getting a liquor license. Is this location in the Lincoln Square? I drove beer trucks in the late eighties and early nineties. I saw a bunch of places come and go in Tarrant county. I've also been in the fire protection business(fire alarms and fire sprinkler systems). You'll need this if your place has the capacity. The city will require it(Trust me I've bid on a bunch of places like your idea that never got off the ground).

Not trying to be a dissenter, just giving advise. As stated, get a detailed plan together.
This should include some back up capital in case the income doesn't equal or exceed the outgo for a few months.

If this is your dream you can make it happen but don't look to make it big right off. It will take a bunch of hard work.

 

[87grandnat]

Yes this spot is right on the other side of Collins were lincoln square is. It is a great place but I think you and the other guys are right it is out of my league. And yeah i am familiar with HAZMAT, I will be able to get one in a couple of months (when my felony is 7 years) I just dont want to get one of these small places that goes under because of it not being able to compete with larger establishments, and I used to go to this place all the time when they was open and they killed it (I heard they would make 20k on a friday or saturday night)

I think what I have decided to do is keep saving and come up with some funding and maybe try this in a couple years and work on the business plan in the mean time, I know it can work it would just be about coming up with the funds

Thanks,
Joshua

 

[TexasT]

Yes this spot is right on the other side of Collins were lincoln square is. It is a great place but I think you and the other guys are right it is out of my league. And yeah i am familiar with HAZMAT, I will be able to get one in a couple of months (when my felony is 7 years) I just dont want to get one of these small places that goes under because of it not being able to compete with larger establishments, and I used to go to this place all the time when they was open and they killed it (I heard they would make 20k on a friday or saturday night)

I think what I have decided to do is keep saving and come up with some funding and maybe try this in a couple years and work on the business plan in the mean time, I know it can work it would just be about coming up with the funds

Thanks,
Joshua

What's there now? Used to be a Chili's and the Hooters right there at 30. Also a couple of restaurant/club type buildings(one was a Harrigan's) on that lot. Keep the dream alive. Maybe go to and confer with a manager or two that might let you 'work' for them as an assistant to gain some knowledge. Remember they are doing you a favor not the other way around.

They might bring 20k thru the door but there are 6 other nights of the week and I would bet that is gross not net. There are a bunch of expenses that have to be satisfied first before the first dollar is brought in.

Is that club still up and running over across the street from the GM plant? The club scene is very fickle. Westside stories or what ever they are calling it over on the traffic circle in Ft. Worth has been through many iterations and for all I know it isn't open any more either. Grahams or what ever they are calling it on south Cooper has been through a bunch of changes over the years. I have been told that you need to be able to make your money back in six(Yes 6) months by some pretty experienced people. This isn't much time if you ask me.

 

[87grandnat]

Hooters and Chillis is still there, Hooters is on the opposite side of Lincoln square on collins but Chillis is right there in it....There is alot of places now as that place has grown and will continue to grow because of the stadium. Me and my friend are going to think about writting 2 plans, one for a larger place (pitch it to some banks and see what happens) and another for somewere maybe half the size because maybe we would be better off starting smaller (especially size we dont have any funds) One thing I dont understand is how can a bank not give me a loan for 100k if I came up with 10k I have a very good credit score and make 70k a year. Granted I wouldnt be working anymore, I mean I could get a loan for a freaking 250k home but not to try to live the American Dream....to me its f*cked up

That place across from the GM plant (off 360 and Abrams) it is called Cowboys now...it has stayed in business but I dont know how as its always slow over there. The thing about starting a club or bar isnt really a dream as much as the part of doing my own thing thats the dream....its the whole the skies the limit deal. At 26 I am sooo tired of the **** you put up with when working for someone else (and i make very good money as a truck driver) it is enuff to make someone crazy.

Joshua

 

[rmar]

There is a lot to be said about clocking out and going home every night. If you think you have problems know, just wait until you do have your own business.
Everybody not in business will tell you "pay yourself first"
When in fact you are the last one that gets paid.
On a commercial loan its 20% down not 10%. That's 20k per 100k and 7yrs not 30yrs. Remember you are not buying real estate. And know you probably have insurance were you work,Health,life,bennies. you know. And you will need health insurance for the Prozac and ambien you will need. Prozac for work and ambien for home. Beer only goes so far. Sad, yes, but true.

 

[87grandnat]

So you need 20% of what you want to borrow? So if I wanted 100k I need to show the bank I have 20K?

Joshua

 

[Junior Samples]

And you will need health insurance for the Prozac and ambien you will need. Prozac for work and ambien for home.

Dont forget the knee pads you will need for the city councilmen who runs that district for he will be lining up to get his

 

[rmar]

Yep,

If something happens under the table and no one see's it , did it really happen?

 

[87grandnat]

Well I dont have any benefits were I work at so I dont give a **** about that. Being tired and miserable trying to make yourself rich couldnt be anywere as bad as being tired and miserable making someone else rich.

I could come up with 20k...it would just then be to make sure you could open up what you wanted to for 120k.

Joshua

 

[rmar]

They only want to loan 80% of the value. But if your timing wasn't so bad
with the econnomy. Banks may not like bars but they do like real estate and making
big loans.

Good Luck

 

[87grandnat]

So if you want 100k you will need 20 to get the other 80 from a lender?

sorry but this is new to me,
Joshua